The matter to approve an Advisory Services Agreement with Mortgage Resolution Partners, LLC to assist the City of Richmond in reducing the impact of the mortgage crisis, by advising on the acquisition of mortgage loans through the use of eminent domain, in order to restructure or refinance the loans and thereby preserving home ownership, restoring homeowner equity and stabilizing the communities’ housing market and economy by allowing many homeowners to remain in their homes was presented by City Manager Bill Lindsay. (At 11:00 p.m. on motion of Councilmember Myrick, seconded by Mayor McLaughlin extended the meeting to finish the current item with Councilmember Butt voting Noe). Councilmember Butt left the meeting at ll:15 p.m. Leland Chan and Melvin Willis gave comments.

A motion was made by Councilmember Beckles, seconded by Councilmember Myrick to approve an Advisory Services Agreement with Mortgage Resolution Partners, LLC. Councilmember Myrick requested a report back from staff regarding loan criteria and specifics. A substitute motion was made by Vice Mayor Booze, seconded by Councilmember Bates to hold the item over for 30 days to gather more information. Following discussion, Councilmember Bates withdrew his second. The original motion to approve an Advisory Services Agreement with Mortgage Resolution Partners, LLC passed by the following vote: Ayes: Councilmembers Bates, Beckles, Myrick, Rogers, Vice Mayor Booze, and Mayor McLaughlin. Noes: None. Abstentions: None. Absent: Councilmember Butt.

As noted above, this action was to approve an Advisory Service Agreement with a follow-up of the criteria and specifics. How the mayor interpreted this as a mandate to go after the lending institutions is beyond me. The mayor has been misrepresenting the city council action by parading around San Francisco and threatening Wells Fargo without the city council approval. In addition, this council has no idea the capacity of Mortgage Resolutions Partners LLC financial ability to pay damages should the court order such against the city. Also, there has not been any staff report regarding loan criteria and specifics as directed in the motion of April 2, 2013,some 4 months ago which suggest not one councilmember including the mayor understand the criteria and specifics.

In addition, this action has caused serious financial risk to the city, and each and every homeowner or potential home owners who wish to refinance, purchase or sell a home in this city. My recent communication with the Finance Director, Mr. Jim Goins indicate the city was circulating some 30 millions of dollars in revenue bonds. Although the city has a strong A bond rating, not one financial institution was willing to come forward to purchase these bonds because of the Eminent Domain issue and Wall Street’s reaction to the City of Richmond. Kindly take a look at the reactions from several news articles, etc listed below.

While most of us are sympathetic to the many citizen who are undergoing financial risk of losing their homes through the mortgage crisis and etc, as responsible elected officials, we must not comprise the integrity and financial ability of this city to operate efficiently.

It is important this council take leadership and do our job in representing our citizenry. Therefore, I am requesting my council members join me in calling for a special city council meeting within the next seven days to clarify and make the necessary corrections to offset this potential financial liability and embarrassment to this city. Should my fellow colleagues concur, kindly email your support to the city clerk as soon as possible.